Wedoany.com Report-Nov. 22, The Danish Energy Agency has officially launched a new round of offshore wind tenders offering three designated marine areas for the development of at least 2.8 GW of new capacity. The sites include North Sea Mid, Hesselø in the Kattegat Sea, and North Sea South. Once operational, the combined projects are projected to deliver enough renewable electricity to meet the annual consumption of approximately three million average households across Denmark and connected European markets.

The agency has set a payment cap of DKr55.2bn for the state.

This tender round introduces a more flexible framework designed to secure qualified bids after the 2024 process, in which six areas were offered but the first three received no submissions by the deadline. Extensive market dialogue throughout 2025 led to two political agreements that shaped the current structure.

Central to the new model is a two-sided contract-for-difference (CfD) mechanism. The state guarantees developers a fixed strike price for generated electricity. When market prices fall below this level, the government provides top-up payments; conversely, when prices exceed the strike price, developers return the surplus. Total state support is capped at DKr 55.2 billion (approximately US$8.54 billion) including VAT, providing clear budgetary boundaries while reducing revenue risk for investors.

Sustainability and responsibility criteria are fully integrated into the tender conditions. Winning bidders must demonstrate turbine blade recyclability, implement measures against social dumping throughout the supply chain, and, for the Hesselø site specifically, incorporate nature-inclusive design elements to minimise environmental impact. The Danish Energy Agency also reserves the right to require proof of full compliance with relevant cybersecurity regulations before final award.

Submission deadlines are staggered to allow thorough preparation: bids for North Sea Mid and Hesselø are due in early 2026, while North Sea South has a later closing date of late 2028, reflecting differing project readiness and seabed survey timelines.

The redesigned process reflects Denmark’s continued commitment to maintaining its position as a global leader in offshore wind deployment. By addressing previous market concerns and offering enhanced risk mitigation alongside strict environmental and social standards, the authorities aim to attract strong international and domestic interest and ensure timely addition of large-scale renewable capacity to the Nordic and European grids in the coming decade.